Only 2 of 47 counties free MCAs from governors' purse

Only two of Kenya's 47 counties had operationalised the County Assembly Funds meant to give MCAs financial independence from governors by 30 June 2026, the Controller of Budget's latest Budget Implementation Review Report shows.

Trans Nzoia had approved transfers of Sh509.17 million into its fund and Marsabit had transferred Sh890.46 million. The other 45 counties were at different stages of setting theirs up, the report found.

The figures come more than a year after President William Ruto signed the County Public Finance Laws (Amendment) Act, 2025, which requires a County Assembly Fund in every county.

What the law says

The Act amended the Public Finance Management Act to create a separate fund for each county assembly, administered by the clerk of the assembly. The clerk must ensure the money is used only for assembly functions.

Under the earlier system, every assembly funding request had to pass through the county treasury. MCAs complained for years that this gave governors leverage over the bodies meant to scrutinise them.

Accountability safeguards remain. The law requires a County Assembly Service Fund Account at the Central Bank of Kenya, and withdrawals need approval from the Controller of Budget.

The sponsor's argument

Meru Senator and Senate Deputy Speaker Kathuri Murungi, who sponsored the Bill, argued that lack of money had weakened assemblies and their oversight work.

"Most of the time, there is no money in the county assemblies. When they requisition, they are not able to get the funds to carry out their work," Murungi told senators during debate on the Bill.

He compared it to Parliament, where money is shared between the two Houses through the Parliamentary Service Commission. He said Parliament decides what to do with its money and when, and the same should apply to county assemblies.

Why the delay matters

The law gives county finance executives the job of establishing the funds. Those officials are appointed by governors, which leaves room for the executive's influence to slow the process.

The reports cite no governor publicly opposing the funds, and they do not explain the reasons for delay in each county. Some may be administrative: setting up accounts, writing regulations and agreeing transfer schedules takes work. But the pattern, 45 counties behind a full year after the law took effect, needs explaining.

Controller of Budget Margaret Nyakang'o has repeatedly called for action. In her June report she directed assembly clerks to work with county finance executives to have the funds running by 30 June 2026. That deadline has now passed with the same two counties on the list.

She has also asked county governments to include clear disbursement schedules for transfers from the County Revenue Fund to the County Assembly Fund in their 2026-27 budget submissions.

The two counties that have moved show it can be done. Trans Nzoia and Marsabit are very different places, one an agricultural county in the west and the other a vast arid county in the north, yet both completed the process within the same legal framework that the other 45 counties face. Their clerks and finance teams could usefully share how they did it, and the Council of Governors and the County Assemblies Forum could put that experience in front of every county.

Comparing the two is also a test of the law itself. If their assemblies now receive money on a predictable schedule, the reform is working where it has been tried, and the problem elsewhere is will, not design.

The governor-MCA power balance

Governor-MCA disputes have been a constant of devolution, from impeachment motions to budget stand-offs. Control of money sits underneath many of them. An assembly whose allowances, travel and operations can be delayed by the executive has less freedom to pursue an audit query or an impeachment.

The reverse risk also exists. An assembly with guaranteed funds and weak internal controls could spend freely on itself. That is why the Controller's approval of withdrawals, and the Auditor-General's scrutiny, remain important under the new system.

The County Governments Act already sets a ceiling on assembly budgets, at no more than seven per cent of a county's total revenue or twice the assembly's personnel emoluments, whichever is lower. The fund changes who holds the money, not how much assemblies get.

Election-year stakes

With elections in August 2027, the coming months are when governor-assembly relations are most strained. Governors want budgets passed and projects approved. MCAs, many seeking re-election, want visibility and resources. Disputes over money can easily turn into political fights.

Fully functioning assembly funds would take one source of friction off the table. Their absence keeps it there.

What residents can ask

Residents can ask their county assembly clerk and county finance executive a simple question: has our County Assembly Fund been set up, and if not, why not? Assembly budget committees can demand a timetable in public sittings. Senators, whose job includes protecting devolution, can summon counties that are furthest behind.

What to watch

The Controller of Budget's next quarterly report, and whether more counties appear on the list. Whether the Senate's devolution committees take up the delay. And whether the 2026-27 county budgets include the disbursement schedules Nyakang'o has asked for.